How Do I Enter and Liquidate Encumbrances?

The following is a checklist for entering and liquidating Stand-Alone Encumbrances. If needed, review the checklist for Setting Up Encumbrances.

Note that Encumbrances can also be created on purchase orders through the Create Purchase Orders process using Activities>Purchase Orders>Create/Modify Purchase Orders.

To Enter Encumbrances
  1. Enter encumbrances (Transactions>Encumbrances>Enter Encumbrances). If a status of Online Posting is selected, the system posts each document as it is completed and saved. Consequently, you would skip the posting steps in this checklist.
  2. Print a list of unposted encumbrances (Reports>Transaction Reports>Unposted Encumbrance Transactions).
  3. Compare the encumbrances to the printout, and make any necessary edits or additions to the batch (Transactions>Encumbrances>Enter Encumbrances).
  4. Post the encumbrances, which have a transaction type of ENC (Activities>Manage Sessions>Post Transactions).
  5. Review posted encumbrances (Reports>Transaction Reports>Posted Encumbrance Transactions).
To Liquidate Encumbrances
Transactions>Enter Cash Disbursements,

There are two methods for liquidating encumbrances Manual and Automatic. Manual Encumbrance liquidation is accomplished by following the steps below. Automatic liquidation is accomplished using the Choose Items/Encumbrances form (Transactions>Accounts Payable>Enter A/P Invoices, or Activities>Check Writing>Write Checks form).

  1. Liquidate the encumbrances (Transactions>Encumbrances>Enter Encumbrance Liquidations or Transactions>Accounts Payable>Enter A/P Invoices).
  2. Print a list of unposted liquidations (Reports>Encumbrances>Unposted Encumbrance Transactions).
  3. Compare the liquidations to the printout, and make any necessary edits or additions to the batch (Transactions>Encumbrances>Enter Encumbrance Liquidations or Transactions>Accounts Payable>Enter A/P Invoices).
  4. Post encumbrance liquidations, which have a transaction type of ENL (Activities>Manage Sessions>Post Transactions).
  5. Review posted encumbrance liquidations (Reports>Encumbrances>Posted Encumbrance Transactions).
  6. Review Encumbrance Analysis reports (Reports>Encumbrances>Summary Encumbrance Ledger, Detail Encumbrance Ledger, Aged Encumbrances, and Encumbrance Budget).
  7. Review Financial Statements and include encumbrances as expenditures on the Options tab (Reports>Financial Statements).